Despite active on-chain accumulation, demand for Bitcoin exchange-traded funds (ETFs) in the United States appears to have stagnated over the past four weeks, according to Ki Young Ju, founder of CryptoQuant, an on-chain analytics platform. This assessment, the founder Remarkseven excluding ETF settlement transactions.
Spot the drop in demand for Bitcoin ETFs in the United States
Spot Bitcoin ETFs are crypto derivatives products allowing investors, primarily regulated institutions and whales, to gain exposure to the world’s most valuable coin while avoiding the hassle of custody. Major issuers of spot ETFs like Bitwise and Proshares use a regulated custodian to secure all BTC backing all issued shares in circulation.
However, as parallel data shows, demand has slowed over the past month of trading, with all but one U.S.-based spot Bitcoin fund, BlackRock’s iShares Bitcoin Trust (IBIT), seeing zero influx over the past two days.
According to Farside dataIBIT recorded $73.4 million on April 15. However, this figure represents a drop of almost 30% from the $111 million recorded a day earlier, on April 14. At the same time, the other eight ETFs, excluding GBTC, which are in the process of liquidation and conversion. in a spot ETF, recorded no capital inflows over the same period.
April 15, Lookonchain data watch that GBTC saw $115 million in outflows, while the nine spot Bitcoin ETFs also declined by around $25 million.
BTC remains under immense selling pressure
The contraction in flows into spot Bitcoin ETFs can be attributed to risky market conditions. At press time, sellers were putting downward pressure. Based on the BTCUSDT daily chart, the coin is down 14% from all-time highs.
Even though prices are in a wide range, with support at $61,000 and resistance at $73,800, sellers are holding the high end in the near term. It is worth noting that prices are still framed within the April 13 bearish bar, tilting the trend in favor of sellers from an effort/result perspective.
It is likely that spot Bitcoin ETFs could see outflows if prices dip below $60,000 as a continuation of the price action from late last week. If this is the case, the chances of BTC falling to $53,000 or even $50,000 will not be reduced.
For now, it remains to be seen whether sentiment will change. Although Hong Kong regulators approved several Bitcoin and Ethereum spot ETFs on April 15, their impact is not yet visible in the market. Ethereum, like Bitcoin, remains under pressure and continues to slide towards crucial support levels.
